The entire volume of commercial debt of Russian regions, exceeding 25 percent of its own income, will be replaced by budget loans with maturity time until 2029. This was stated by the President of the country Vladimir Putin at the annual message to the Federal Assembly. The broadcast of the event leads “Russia 24”.
“We will provide regions of infrastructure budget loans with a maturity of 15 years and a bet of no more than three percent per annum,” said the head of state to help regions with debts.
In April, Prime Minister Mikhail Mishustine ordered the head of the Ministry of Finance Anton Siluanov as soon as possible to solve the problem with the debts of the regions, which were maximal over the past ten years.
In March, the Center for Macroeconomic Analysis and Short-term forecasting (MGACP) predicted a possible budget crisis in some Russian regions. His offensive may be due to the fact that in 2020, against the background of the coronavir pandemic, the income of regional budgets decreased sharply, and expenses increased due to the measures to support the economy. This year, the reduction in subsidies from the federal center, which helped to avoid even larger problems in the 2020th.